Great Portland Estates plc (LON:GPE) has announced the acquisition of Cypress Dynasty Limited which owns the freehold interest in One Chapel Place, W1. The total cash consideration is based on a property valuation of £56.0 million (£985 per sq ft on proposed NIA, 4.4% NIY), subject to further balance sheet adjustment post completion. The 34,230 sq ft building is fully let at an annual rent of c.£2.5 million per annum, with the office leases due to expire in mid-2028.
The building is in the heart of the West End, within walking distance of Bond Street tube and Elizabeth line station. The building presents a significant opportunity for additional massing, with existing plans targeting an expansion to approximately 57,000 sq ft, and provides GPE with an exciting opportunity to create a highly sustainable best-in-class HQ redevelopment in this prime London location. GPE plans to refine the existing designs to enhance workspace quality, upgrade amenities, and maximise appeal for future customers.
Alexa Baden-Powell, Great Portland Estates Senior Investment Manager, said, “One Chapel Place meets all of our acquisition criteria. This is a freehold asset, in a prime Bond Street location, with significant massing potential, and provides a rare opportunity to create a best-in-class, premium HQ office building with excellent sustainability credentials in a location that is starved of high quality supply. Together with the recent purchases of The Courtyard, W1, Whittington House and 19/23 Wells Street, we have now invested £162 million into West End acquisitions since our rights issue last summer, or £323 million including the capex we intend to invest in the buildings.”
